Doray swings back into profit in H1
PERTH (miningweekly.com) – Gold miner Doray Minerals has swung into profit during the half-year ended December, on the back of increased gold production.
The miner on Wednesday reported a net profit after tax of A$4-million for the interim period ended December, compared with the net loss after tax of A$18.2-million reported in the previous six months.
However, net profit was down compared with the A$12.5-million reported in the previous corresponding period.
Gold production for the six months to December reached 39 228 oz, up from the 37 964 oz produced in the previous corresponding period, generating revenues of A$60.1-million.
Doray MD Allan Kelly said that the results exceeded expectations in what the company foreshadowed to the market as a leaner period of cash flow for the Andy Well project, in Western Australia.
“Coming into the first half of the 2015 financial year, we forecast lower grades and higher costs at Andy Well as we transitioned from treating stockpiled, higher-grade openpit material to being purely dependent on underground ore.”
Kelly said that the company had had considerable success in reducing unplanned dilution underground, and had seen a significant monthly improvement in head grades, costs and profit margins, which had resulted in better-than-expected results for the half year.
Doray was expected to increase both its production and cash flow in the second half of 2015 as a result of the high-grade Stage 2 openpit.
Production for the full year was expected to reach between 85 000 oz and 90 000 oz, at a cash operating cost of between A$600/oz and A$700/oz.
“We will also see the benefits from a significantly improved gold price since October 2014, and a reduction in diesel prices,” Kelly said.
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